Investors are also cautious ahead of an expected U.S. rate hike in December. "There is a need in the market to have this out and done and dealt. You might get a short, sharp turn down but this will probably underpin a nice rally through the Christmas time once it is out," ,Mr McGlew added.

BHP Billiton was down 2.6 per cent and its spin-off South32 was off by 2.2 per cent, while rival Rio Tinto was flat and iron ore giant Fortescue Metals Group rose 3 per cent.

Energy stocks were also weaker, with Woodside Petroleum down 0.3 per cent and Origin Energy down 1.4 per cent, while Oil Search added 0.5 per cent.

Australia and New Zealand Banking Group led the banks higher, up 2.6 per cent, while Commonwealth Bank of Australia rose 1.5 per cent and National Australia Bank added 1 per cent. Westpac Banking Corp fell 2.2 per cent after trading ex-dividend.